IPOs and merger activity collapsed to start 2016

The MGM Grand Hotel/Casino is seen behind the 16-story tower of the Boardwalk Hotel & Casino as it is imploded early May 9, 2006 in Las Vegas, Nevada Ethan Miller/Getty Images It's been a miserable start to the year for corporate dealmakers.

"To some extent, the decline in activity in 1Q16 can be attributed to a 'cooling off' effect after several years of strong IPO activity across major markets," the report said. "However, fears of a global economic slowdown, perceptions of high market valuations due to ultra-loose monetary policy and the current volatility in capital market conditions have all contributed to the muted start to the year."

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In the US, the decline was even steeper than the global decline in market debuts with the value of IPOs in the first quarter dropping 88% from last year.

In the M&A marker, the same fears about a global slowdown seemed to weigh on activity, though the nature of these deals has proven the market to be a bit more resilient.

"Whereas M&A activity is less tied to specific dates, less publicly exposed, more flexible and has proved more resilient to equity market turbulence," said the report. "Despite a softening on 2015's stellar performance, M&A activity is currently faring better than the IPO market with less steep declines."

And while these "less steep" declines are still pretty bad — again, this is the worst year for merger activity in eight years — EY does see the possibility of an uptick in the months to come.